What's the Corky Thing About Recourse Loans?

"I want to know three people in the market that you have done business with. I don't care if it's a broker, you bought a property from," he said. "That secondary ring is where you get the real information." He added: "Most of my focus is going to be on the individual and do i have faith that they're going to take accountability?"

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Episode notes

For average investors, private money lending has been mentally squared away as “something mega-wealthy people do.” Most investors will write off lending money because they think they lack the experience or funds to do a successful deal. But what if we told you private money lending requires less money than you thought, that it’s almost completely passive, and that today’s high-interest-rate environment may be the perfect time to start?

Alex Breshears and Beth Johnson are graciously coming in as our private money messiahs, teaching us all how easy (and lucrative) it is to be a private money lender. They’ve been lending for years, not only to supplement their real estate portfolios but often to outright replace them. Private money is far more passive and flexible than performing a flip or BRRRR yourself, and almost anyone (and yes, we mean anyone) can do it in one way or another. It’s such a good way to make more money that Alex and Beth wrote the new BiggerPockets book, Lend to Live, on this exact subject.

But before you print off business cards that say “private money expert” under your name, listen to what Alex and Beth have to say. They drop some valuable gems on who should (and shouldn’t) be a private money lender, how to protect yourself when you lend, points, rates, and fees you can charge, and building a pool of borrowers you can trust. If you’re anything like Scott and Mindy, then there’s a good chance you’ll walk away from this episode far more interested in private money than before!

In This Episode We Cover

How any investor can become a private money lender and build a pool of borrowers

Why 2022 presents an interesting opportunity for new private money lenders

Points, rates, laws, and setting up your private money structure

Building the perfect private money team that can protect you on any deal

The insane returns lenders get when doing different types of deals

Betting on the “jockey” vs. the "horse” when vetting a potential borrower

Private lending red flags that new lenders can easily fall prey to

And So Much More!

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